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Home Renovation Tax Credit Advertising Campaign - Concept Testing
Prepared for the:
Public Affairs Branch
Canada Revenue Agency
FINAL REPORT
November 2009
POR# 114-08
Contract #46558-104951/001/CY
Prepared by:
SAGE Research Corporation
Le rapport complet en français sera fourni sur demande.
To request a full copy of this report, please contact Library and Archives Canada at:
613-996-5115 or 1-866-578-7777 or www.collectionscanada.ca
Media Enquiries:
Media Relations
Canada Revenue Agency
4th Floor 555 MacKenzie Avenue
Ottawa ON K1A 0L5
media.relations@cra-arc.gc.ca
Executive Summary
The Home Renovation Tax Credit advertising campaign will start in Summer 2009, and is intended to raise awareness of the Home Renovation Tax Credit (HRTC) introduced by the Government of Canada (GC), increase the number of individuals who avail themselves of this measure, and increase the number of Canadians who believe that the GC is committed to delivering tax relief to individuals and families.
A two-stage research project was conducted:
- Stage 1 -- Advertising Campaign Concept Research: Four alternative advertising campaign concepts were developed -- Breakthrough, She/He, Countdown, and CRA Guy. For each campaign concept, mock-ups were created for the television ad (storyboard together with a pre-recorded presentation of the storyboards) and the radio ad (recording, but not using professional voice talent or final sound effects). The research allowed the Canada Revenue Agency (CRA) to assess the communication effectiveness of the different concepts, identify potential revisions, and assist in selecting the strongest concept overall.
Eight focus groups were conducted May 21 - 25, 2009, in Halifax, Montréal, Toronto and Vancouver. Participants were homeowners, with quotas to ensure a cross-section on gender, age and household income. - Stage 2 -- Research on Rough-Cut Television Ad: Focus groups were conducted to assess reactions to the rough-cut television ad for the selected campaign concept, She/He. The rough-cut ad tested was the one showing a younger couple, and the plan is also to produce a second TV ad showing an older couple. This research allowed the CRA to assess the communication effectiveness of the rough-cut ad showing the younger couple.
Four focus groups were conducted July 6, 2009, in Toronto and Montréal with the same target group as in the Stage 1 research.
This research was contracted at $73,326.75 (GST included).
STAGE 1 -- ADVERTISING CAMPAIGN CONCEPT RESEARCH
For all four advertising campaign concepts, the primary perceived messages pertained to the HRTC. The secondary perceived message was that the HRTC is part of the Government of Canada’s plan to help stimulate the economy.
With regard to communication of information about the HRTC, there were some differences in perceived emphasis among the campaign concept, but all four concepts effectively communicated the basic points, namely:
- The program pertains to home renovations
- There is a monetary value of up to $1,350
- There is a limited time window for qualifying home renovation expenses, and expenses must be incurred before February 1, 2010
- Save your receipts
- Go to the Web site for more information
Most participants had a positive response to the GC advertising the HRTC, and quite a few perceived potential personal benefit from this tax credit.
The majority of participants claimed that if they saw the GC advertising campaign, they might take some follow-up action. This proportion is likely inflated by the focus group environment, but is nonetheless an indication of the generally positive reaction to the campaign. Almost all said the follow-up action would consist of going to the Web site to get more information.
Overall, the two strongest concepts were She/He and Breakthrough: they were more likely to be judged acceptable than were the other two concepts, with the large majority of participants rating them as acceptable. Of the two, Breakthrough was a bit more likely to be ranked first or second as compared to She/He, and a bit less likely to be judged as an unacceptable approach.
- She/He
The main perceived strengths of the He/She concept were:
- Gentle, warm humour of the husband and wife interaction, including the role of the wife in instigating the home renovation projects
- Shows some less expensive renovations that qualify for the HRTC, and also shows that do-it-yourself (DIY) jobs are eligible for the HRTC
There was also a widely positive response to the receipts folder shown in the ad, although it was not clear where or how to get the folder.
The main issue some participants had with the She/He TV ad was perceived gender stereotyping or sexism. These participants suggested the TV ad be revised to show the woman playing a more active role in doing some of the renovation work, and that the man be portrayed in a more positive way.
Other notable issues and participant suggestions for She/He included:
- Delete the flushing sound from the radio ad.
- Consider showing a tradesperson working, in order to convey that the cost of hiring someone is eligible for the HRTC as well as DIY costs.
- Breakthrough
The main perceived strengths of the Breakthrough concept were:
- Has some strong attention-getting elements in the TV and radio ads
- Creates interest in doing renovations through use of pre-renovation and post-renovation images
The main issue was that some participants perceived the two renovations shown in the TV ad -- kitchen and bathroom renovations -- to be quite expensive renovations. This perception had two impacts: (1) It led some to question the value of the tax credit, because the ad was perceived to give the impression one needs to spend a great deal of money to get the full $1,350 tax credit (e.g., some participants mentioned dollar figures of $20,000 or more, based on what they saw in the TV ad); (2) Some participants said they did not think the TV ad would attract the interest of modest to lower income households, because they thought such homeowners are relatively unlikely to consider doing such costly renovations. Some participants suggested revising the TV ad so that it also show a less expensive type of renovation (e.g., in place of showing the bathroom renovation).
Other notable issues and participant suggestions for Breakthrough included:
- Consider showing an exterior renovation as well as an interior renovation.
- Consider revising the pre-renovation images to make the rooms less messy looking.
- Clarify the identity of the narrator, and revise the depiction of the narrator to achieve the desired impression.
- Consider revising the construction sound used in the radio ad to be more consistent with a kitchen renovation.
With regard to the other two campaign concepts:
- CRA Guy: While some participants favoured this concept, over one third considered it not to be an acceptable approach. The latter felt it is not at all realistic that a CRA or “government” employee would be helpful in the general way depicted in the ad, and did not see much humour or relevance in showing helpfulness in this fashion. Some also did not like the idea of having a CRA employee at their house.
- Countdown: Over half the participants considered Countdown not to be an acceptable approach to use for the advertising campaign. The main reason was that it was perceived as trying to put too much pressure on people to take action. Some also commented that by placing so much emphasis on the urgency of acting, the ads tended to create feelings of stress and anxiety rather than positive feelings about the potential value of the HRTC.
STAGE 2 -- RESEARCH ON ROUGH-CUT TELEVISION AD
Overall participant reaction to the She/He TV rough-cut ad was positive, and communication performance was good.
Consistent with the Stage 1 concept test results, the primary messages perceived to be conveyed by the ad were:
- The program pertains to a wide variety of home renovation projects.
- There is a monetary value up to $1,350 which is claimed when filing one’s income tax return.
- There is a deadline of before February 2010 for expenses that can be claimed.
- Save your receipts, possibly using the envelope shown in the TV ad.
- Go to the Web site actionplan.gc.ca for more information.
A secondary perceived message was that the HRTC is part of a GC stimulus program to help the economy.
Also as was the case in the Stage 1 research, a large majority of participants were interested in the HRTC, and many said their next step after seeing the ad would be to get more information about the HRTC by going to the Web site.
Participants generally reacted positively to the TV rough-cut execution. Perceived positive features of the ad included:
- The tone is perceived to be “positive,” “happy,” “friendly.”
- The ad is perceived to communicate information in a straightforward way, with “no hype.”
In the Stage 1 concept evaluation of She/He, it was noted that the main potential issue with the concept as rendered in Stage 1 was that some participants perceived gender stereotyping or sexism. Associated with the adjustments made to the concept to address this issue, there were almost no negative comments in this regard about the rough-cut TV ad.
